Helping Hand

Buffett Pumps Cash Into Bank of America

The nation’s biggest lender just got a cash infusion of its own: Warren Buffett will invest $5 billion in Bank of America in an effort to help prop up the bank. Buffett’s company, Berkshire Hathaway, will buy 50,000 shares of cumulative perpetual preferred stock with a 6 percent annual dividend. Bank of America stocks have had trouble in recent weeks because of fears that the bank might need to raise as much as $50 billion of outside capital to combat losses and meet new industry regulations. Bank of America shares spiked 20 percent as a result of the news.